{"id":"ci0297c498d00025ef","isDetailPage":true,"objectType":"ContentArticle","originalPublicationTimestamp":"2022-01-20T22:00:00Z","path":"/2022/01/gensler-activism-may-be-insider-trading","publicationTimestamp":"2022-01-20T22:00:00Z","title":"Activist Investing Basically Insider Trading, Sayeth Gary Gensler","viewProperties":{"viewMeta":{"suppressContentRecommendations":false,"showLimitedSiteFooter":false,"disableSiteHeader":false,"disableSiteFooter":false,"suppressDisplayAds":false},"analyticsModel":{"title":"Activist Investing Basically Insider Trading, Sayeth Gary Gensler","exclusiveContentType":"free","sanitizedTitle":"Activist Investing Basically Insider Trading Sayeth Gary Gensler","pageType":"Article Page","mavenPageType":"article","sectionPath":"Hedge Funds","parentSectionName":"Hedge Funds","authorName":"Jon Shazar","author":"tm-ci023cf8a7000927dc","videoAuthorName":"","videoTitle":"","publicationQuarter":"2022Q1","trackedRichTermNames":"","originalPublishDate":"2022-01-20"}},"commentsEnabled":true,"dek":"He’s got a lot of plans for the hedge fund industry, and it’s not going to like them.","disqusId":"a0190f78-7a0d-11ec-a81c-06f5069f922f","isCanvas":true,"primaryImage":{"isReadonlyContent":false,"title":"gensler","attribution":{"sourceName":"US government, Public domain, via Wikimedia Commons"},"format":"jpg","bytes":36339,"primaryPhotoId":"ci027413b2000027c6","createdTimestamp":"2020-11-13T12:40:01Z","primaryContentSiteId":"cs02394295300027a8","height":197,"cloudinaryVersionId":1605271199,"publicId":"MTc2Nzg3OTQwMzMwOTczMTI2","objectType":"ContentPhoto","width":247,"hasFaces":true,"createdPrincipalId":"up023c94b9f000250a","id":"ci027413b2000027c6","primarySiteId":"cs02394295300027a8"},"primaryImageId":"ci027413b2000027c6","primarySectionIds":["ci023cf8a5d00027dc"],"sectionIds":[["ci023cf8a5d00027dc"]],"slug":"gensler-activism-may-be-insider-trading","teaser":"He’s got a lot of plans for the hedge fund industry, and it’s not going to like them.","hasGallery":false,"associatedRichTerms":[{"id":"ci023cf8aa600227dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:53:21Z","path":"/tag/gary-gensler","publicationTimestamp":"2019-01-14T17:50:23Z","title":"Gary Gensler","commentsEnabled":true,"disqusId":"39a8daba-1826-11e9-97cb-02547ef6f3f6","slug":"gary-gensler"},{"id":"ci023cf8a5d00027dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:48:30Z","path":"/category-hedge-funds","publicationTimestamp":"2019-01-14T17:50:10Z","title":"Hedge Funds","commentsEnabled":true,"disqusId":"0dcf287c-1826-11e9-b993-025f192f501e","slug":"category-hedge-funds"},{"id":"ci0297da43c0002790","objectType":"ContentRichTerm","originalPublicationTimestamp":"2022-01-21T17:04:58Z","path":"/tag/13-d-filings","publicationTimestamp":"2022-01-21T17:04:58Z","title":"13-D Filings","commentsEnabled":true,"disqusId":"448269a1-7adc-11ec-963b-06b8cd2097bf","promoTitle":"13-D Filings","slug":"13-d-filings"},{"id":"ci023cf8ac200625f5","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:55:31Z","path":"/tag/hedge-fund-fees","publicationTimestamp":"2019-01-14T17:48:45Z","title":"hedge fund fees","commentsEnabled":true,"disqusId":"49731e77-1826-11e9-b99e-025f192f501e","slug":"hedge-fund-fees"},{"id":"ci023cf8a5e00527dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:51:37Z","path":"/tag/regulation","publicationTimestamp":"2019-01-14T17:49:31Z","title":"Regulation","commentsEnabled":true,"disqusId":"0e949c92-1826-11e9-97c3-02547ef6f3f6","slug":"regulation"},{"id":"ci023cf8a7100527dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:53:44Z","path":"/tag/activist-investing","publicationTimestamp":"2019-01-14T17:52:02Z","title":"activist investing","commentsEnabled":true,"disqusId":"1965b89c-1826-11e9-b993-025f192f501e","slug":"activist-investing"},{"id":"ci023cf8a8900427dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:50:32Z","path":"/tag/sec","publicationTimestamp":"2019-01-14T17:49:26Z","title":"SEC","commentsEnabled":true,"disqusId":"27fdde0b-1826-11e9-b997-025f192f501e","slug":"sec"},{"id":"ci023cf8a6d00527dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:49:45Z","path":"/tag/category-hedge-funds","publicationTimestamp":"2019-01-14T17:53:18Z","title":"Hedge Funds","commentsEnabled":true,"disqusId":"16e619c2-1826-11e9-b993-025f192f501e","slug":"category-hedge-funds"},{"id":"ci023cf8a8500125f5","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:48:48Z","path":"/tag/artificial-intelligence","publicationTimestamp":"2019-01-14T17:53:12Z","title":"artificial intelligence","commentsEnabled":true,"disqusId":"251d72b0-1826-11e9-b996-025f192f501e","slug":"artificial-intelligence"},{"id":"ci023cf8aac00625f5","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:55:14Z","path":"/tag/category-private-equity","publicationTimestamp":"2019-01-14T17:50:40Z","title":"Private Equity","commentsEnabled":true,"disqusId":"3d092e09-1826-11e9-97cb-02547ef6f3f6","slug":"category-private-equity"},{"id":"ci023cf8a9f00227dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:49:02Z","path":"/tag/insider-trading","publicationTimestamp":"2019-01-14T17:49:44Z","title":"insider-trading","commentsEnabled":true,"disqusId":"34c44b9d-1826-11e9-97c6-02547ef6f3f6","slug":"insider-trading"}]}

• Home
• Hedge Funds

Activist Investing Basically Insider Trading, Sayeth Gary GenslerHe’s got a lot of plans for the hedge fund industry, and it’s not going to like them.

• Author:Jon Shazar
• Publish date:Jan 20, 2022

US government, Public domain, via Wikimedia Commons

He’s got a lot of plans for the hedge fund industry, and it’s not going to like them.

As we’ve seen and spoken about at some length, Securities and Exchange Commission Chairman Gary Gensler has a long and growing to-do list. And having taken nine months to draw it up, he’s maybe got a little less than a year to get it all done.

If Republicans gain control of the House or Senate next year, the committees that oversee the SEC would likely summon Mr. Gensler to testify more frequently at hearings on Capitol Hill. They could also threaten to cut the agency’s budget or forbid it from pursuing certain policies via amendments to must-pass pieces of legislation.

“There’s the very big risk that his agenda could get caught up in a change in the control of the Congress, and that would be very difficult for him and the SEC,” said Hal Scott, an emeritus law professor at Harvard Law School.

Perhaps with this in mind, Gensler is at last getting busy.

The U.S. Securities and Exchange Commission will look at what fund managers charge as part of a broader effort to boost efficiency, competition and transparency in markets, Gensler said Wednesday…. In addition to the asset management industry, Gensler said staff would review equity, bond and Treasury trading for areas to make improvements.

Another area of focus for the SEC this year will be the role predictive analytics and artificial intelligence play in financial markets, Gensler said.

Well, if that wasn’t enough to make hedge fund manager blow coffee through their noses all over their inflows, perhaps this novel take on insider trading will do it.

The agency is considering changing the rules under which hedge funds disclose that they have acquired 5% of a public company’s stock, Gensler said during a virtual Q&A at the Exchequer Club in Washington, D.C…. “I would anticipate we’d have something on that,” Gensler said, adding that he is worried about “information asymmetry,” because the public doesn’t know there’s a big player buying up shares during the 10-day period….

“It’s material nonpublic information that there’s an activist acquiring stock, who has an intent to influence and generally speaking, there’s a pop if you look at the economics from the day they announced … there’s usually a pop in the stock at least single-digit percent,” Gensler said. “So the selling shareholders during those days don’t have some material information.”

Hedge Fund Fees in Crosshairs as Gensler Lays Out SEC’s 2022 Agenda [Bloomberg]
SEC eyes tighter disclosure deadlines for hedge funds building big stakes in companies [CNBC]
SEC Under Pressure to Implement Agenda in 2022, While Democrats Control Congress [WSJ]
Global hedge fund industry assets top $4 trillion for the first time [Reuters]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.

Tagsterms:Gary Gensler13-D Filingshedge fund feesRegulationactivist investingSECHedge Fundsartificial intelligencePrivate Equityinsider-tradingBy Jon Shazar

Hedge FundsGary Gensler To Finish Other People’s Work Before Starting In On His Own

Proxy disclosures a decade in the making are finally coming.

NewsGary Gensler To Do More In First Months Than Jay Clayton Did In Four Years

The little regulator that could has 10b5-1 plans, SPACs, Twitter, accounting and chief compliance officers in his sights.

CryptocurrenciesGary Gensler Stands Astride History Yelling Stop

Actually, he’s not saying anything. Just suing.

NewsGary Gensler, His Slide Rule Are Coming For Your Bonuses

If companies can’t do math properly, the SEC will do it for them.

NewsInsider Trade Legally While You Still Can

Gary Gensler is getting ready to make 10b5-1 plans a lot less fun and profitable.

CryptocurrenciesDecentralized Finance Not Nearly Decentralized Enough To Escape Gary Gensler’s Notice

In fact, he thinks it looks downright regulatable.

NewsJoe Biden Getting Gary Gensler A New Friend

And she doesn’t like cryptos any better than him.

NewsGary Gensler Hires Gary Gensler For Job Gary Gensler’s Been Waiting Seven Years For

Looking for comment letters on undoing everything Jay Clayton did over the last four.

• Privacy Policy
• Send Tips
• About
• Advertising
• Newsletter
• RSS

© 2022 Breaking Media Inc.